CBI raps corporate affairs ministryon 2G reports

NEW DELHI: The Central Bureau of Investigation (CBI) has demanded an explanation from the ministry of corporate affairs (MCA) over "apparent contradictions" in its various reports furnished in connection with the multi-crore 2G scam.

The agency is apprehensive that the MCA's flip-flop, as evident in its reports on Swan and Loop Telecom, might harm the ongoing 2G trial. In a confidential memo, a copy of which is with TOI, the CBI joint director J D Awasthy wrote last week to MCA secretary seeking the ministry's comments and views on this.

Awasthy asked the MCA to "consolidate its views and furnish its comments in view of apparent contradictions in the various reports given by it in respect of Swan Telecom and Loop Telecom matter which may prejudice the logical conclusion of this important investigation/trial being monitored by the Supreme Court."

The CBI note to the MCA came after Loop telecom, one of the companies being probed by the agency, cited a report by Mumbai-based western region director of MCA that gave it a clean chit. The agency is investigating into allegations that Essar Group companies controlled Loop using 'corporate veil', resulting in violation of Clause 8 of telecom licence guidelines. Contrary to what the CBI claims, the MCA says as per records available with the Registrar of Companies the holding of promoters of Essar Group was less than 10% in Loop, and hence there was no violation of Clause 8 of Unified Access Service Licence guidelines.

However, the CBI has already informed the apex court that it disagrees with the MCA's clean chit in the matter and it is in this backdrop that its joint director wrote to the MCA, pointing out to discrepancies in several reports of the ministry.

The agency reminded the MCA that in respect of Swan Telecom the same regional director office in Mumbai had concluded in March that an analysis of documents, minutes of meetings revealed that Swan telecom was a holding company of Reliance Telecom at the time it obtained licence. The CBI says, the ministry has given a clean chit to Loop despite similar evidence.

Awasthy's letter also cited a 2009 report of the MCA, where it concluded that the Essar Group funded BPL Communications (as Loop was then known). Sources in the agency said they are apprehensive the MCA's somersault on Loop would affect their cases against Swan and Unitech — both accused in the 2G scam. That's because while Loop faces allegations similar to Swan with respect to its equity pattern, the CAG report has indicted both Unitech and Loop for not having telecom in its Memorandum of Association on the date they submitted applications for licence.